MAHB Recorded RM781.1 Million Revenue On The Back Of 18.1% Passenger Growth In 1Q14

24 April 2014

Sepang, 24 April 2014 - Malaysia Airports Holdings Berhad ("MAHB") recorded a revenue of RM781.1 million for the three months ended 31 March 2014 ("1Q14"),
representing a decline of 24.0% compared to RM1,027.2 million in the corresponding period in 2013 ("1Q13"). Earnings before interest, tax, depreciation and
amortisation ("EBITDA") grew 2.1% to RM257.9 million, from RM252.7 million in 1Q13. Profit after tax ("PAT") grew 1.9% to RM128.7 million in 1Q14, compared
to RM126.3 million recorded in 1Q13.

In line with the adoption of IC Interpretation 12: Service Concession Arrangements ("IC 12") effective 1 January 2012, MAHB recognises the construction
revenue and costs in accordance with FRS 111: Construction Contracts by reference to the stage of completion of the construction works of klia2, which is
construction works on public sector infrastructure assets and services currently being undertaken by MAHB. In 1Q14, MAHB recognised the construction
revenue and costs amounting to RM121.6 million and RM116.4 million respectively, as compared to RM454.6 million and RM435.0 million respectively in 1Q13.

Excluding the effects of IC 12, revenue for 1Q14 was RM659.5 million, which was 15.2% higher than the RM572.5 million registered in 1Q13. PAT for 1Q14 was
RM123.5 million, which was 15.9% higher than the RM106.6 million registered in 1Q13.

Airport Operations Segment
The increase in operating revenue was attributed to stronger results from the airport operations segment, driven by strong air travel demand especially in
the Asia Pacific region. MAHB recorded passenger growth of 18.1% in 1Q14, outpacing the expected passenger growth rate of 9.7% for 2014, with a total of
20.6 million passengers having passed through MAHB's 39 airports in Malaysia. Both international and domestic passenger movements recorded strong growth at
14.9% and 21.5% respectively. The total passenger movements in KLIA increased by 16.4%, whereby both KLIA-MTB & LCCT recorded positive growth of 19.4%
and 13.2% respectively. All other airports recorded strong aggregate growth in total passenger movements of 20.8%.

Total aircraft movements grew 12.3% to 189,610 aircrafts, with the domestic sector recording a higher growth of 13.0% compared to the international sector,
which recorded a 10.8% growth.

Excluding the effects of IC 12, the revenue generated by airport operations segment improved by 15.6% to RM620.8 million, mainly driven by aeronautical
revenue which had improved by 22.1% on the back of strong increase in passenger and aircraft numbers. The increase in revenue was also attributed to the
implementation of the new landing and parking charges with the increase of 9% and 18% respectively (compounded annually effective 1 January 2012, 1 January
2013 and 1 January 2014).

The PAT growth was however dampened by higher total costs mainly attributed by higher user fee and utilities costs. Previously, the amount of user fee that
has been recognised in the income statement represents half of the total user fee payable to the Government of Malaysia, while the other half is to reduce
the amount due for the Balance Residual Payment arising from MAHB's restructuring exercise which was completed in February 2009. Upon the full settlement
of the Balance Residual Payment in April 2013, the user fee is now fully recognised in the income statement. The user fee for 1Q14 increased by 144.2% to
RM63.1 million as compared to RM25.8 million in 1Q13. In addition, the utilities costs increased 19.1% to RM59.9 million mainly due to higher consumption
and tariff hike for both electricity and chilled water.

The non-aeronautical revenue recorded a growth of 8.9% to RM286.1 million on the back of improved performance in the retail and rental businesses. MAHB's
own retail business grew 14.3%, driven by increase in passenger volume and higher retail spending by passengers. Revenue from rental of space, advertising
and other commercial segments grew 1.5% to RM101.0 million, contributed mainly by higher rental royalty resulting from the higher sales at KLIA.

Non-airport Operations Segment
The non-airport operations segment recorded revenue of RM38.7 million in 1Q14, representing a growth of 8.4% from RM35.8 million recorded in 1Q13 mainly
due to higher revenue recorded in agriculture and horticulture segment as well as the project and repair maintenance segment. The agriculture and
horticulture segment registered higher revenue of RM6.9 million in 1Q14 which was 14.0% higher than the RM6.1 million registered in 1Q13 due to higher
price attained for fresh fruit bunches despite lower production volume for the period (2014: RM564/12,165MT vs. 2013: RM456/13,199MT). Similarly, the
project, repair and maintenance segment recorded a higher revenue of RM11.8 million in 1Q14, representing a growth of 12.7% mainly contributed by the
revenue derived from the provision of facilities maintenance services at Doha International Airport. The hotel segment revenue increased by 4.1% to RM20.0
million contributed mainly by higher occupancy rate.

Industry Review
Globally, demand for air travel continues to record optimistic trends based on rising business confidence and robust performance in key emerging markets,
despite the ongoing Ukraine crisis in Europe. The International Air Transport Association ("IATA") announced that global passenger traffic recorded 5.4%
growth for February 2014 against February 2013. The International Monetary Fund ("IMF") in its recently released report has indicated that the advanced
economies such as USA, Europe and Japan are showing resilient performance and are expected to experience higher economic growth than previously
anticipated.

The entry of new airlines and expansion of local carriers are continuously contributing strongly to the overall passenger growth. Malaysia Airlines' entry
as a full member of oneworld in February 2013 has significantly increased the market outreach across continents and will continue to provide critical
support for passenger growth. Furthermore, the additional seat capacity expansion by various airlines coupled with the Visit Malaysia Year 2014 campaign
would continue to fuel the growth trend.

Industry Outlook
While it is premature to assess the impact on international passenger arrivals after the MH370 incident, this is not expected to affect the positive growth
of passenger numbers in the longer term. A testimony of this trajectory is the higher than expected passenger growth in the first quarter of 2014 which
recorded a robust increase of 18.1%. This achievement well surpasses MAHB's full year forecast of 9.7% and the global estimate of 5.8% forecasted by IATA
based on the assumption that Malaysia's GDP growth would be in the range of 5.0%-5.5% for the year 2014.

Furthermore, klia2 which will commence operations on 2 May 2014 is expected to be the catalyst in boosting MAHB's performance in 2014, mainly contributed
by klia2's unique targeted retail and commercial offerings attractive to passengers and airport visitors. However, klia2 is expected to incur higher
operating expenditure compared to the current LCCT, due to its much larger capacity which is designed to accommodate for future growth in passengers and
aircraft movements. Notwithstanding the above, MAHB's performance is expected to further improve from 2015 onwards with the full year operations of klia2.
As MAHB continues on its journey, it is clearly taking flight towards operational efficiency and profitability.